Not having enough stock for Christmas is a cardinal sin for a retailer, but one that JJB Sports has succumbed to.

The company's suppliers had been holding back stock while it battled - successfully in the end - to avoid administration, helped by a £100m capital raising in October.

In a trading update today JJB said it was beginning to take delivery of stock, and levels were 19% lower than last year compared to 56% at the half year. But it added:

We do not expect to receive our full stock package until the first quarter of 2010. Consequently we continue to be cautious about Christmas and New Year and expect that trading within the current environment will remain difficult.

Like for like revenues for the 20 weeks to 13 December fell 29%, with the fall accelerating into December (compared to last year when JJB's sale started earlier.)

The grim news has left JJB shares 1.25p lower at 26.75p, and Kate Heseltine at Seymour Pierce issued a sell note on the business:

JJB has issued a relatively underwhelming update on trading for the 20 weeks to 13 December. Despite some improvement in like for like sales through August, -37%, September and October, -27% and November, -21%, there has been some slippage in the first three weeks of December back to -32% as a result of the Christmas sale starting a month later, on 26th December, this year. Gross margins have encouragingly improved by 12% to 46% since interim though remain 90 basis points below the same period last year. Due to ongoing stock shortages, with levels now 19% lower than last year, management anticipate Christmas trading being challenging.

We are retaining our 2010 pre-tax loss forecast of £48m, declining to £1.5m in 2011; feeling that management's optimism at passing break-even in the next year are over ambitious, as are plans to be fully stocked during the first quarter of 2010. Although the new appointment of former DSG International senior manager Keith Jones will strengthen the board we reiterate our sell recommendation in light of the significant ongoing losses and on concerns over the longer term viability of the 'Serious about sports' strategy in an increasingly competitive environment.

Overall the market has slipped back as investors took profits in the wake of the US Federal Reserve's comments it would leave interest rates low for the foreseeable future, but would let its special liquidity facilities expire next year. So the FTSE 100 is currently down 21 points at 5299.26.

Banks are among the main fallers, with Lloyds Banking Group 1.28p lower at 54.3p. Miners are also lower as commodity prices ease, with Xstrata down 21p at £10.66 and Antofagasta off 19p at 924.5p.